January 05, 2016
Indian Institute of Management-ahmedabad
Mr D M Patel, Senior Manager, Mobile Fish-selling Vans projeCT, Gujarat Fisheries Central Co-operATIve AssociATIon Limited (GFCCA), had to present a plan to the Governing Body for the projeCT which had been making losses for the last few years. He had GFCCA’s annual accounts for 2009-2010 with him, but did not have specific details on the financial performance of the three vans. He needs to decide whether the projeCT should be wound up or should undergo some modificATIons, while taking into account the objeCTives of the Governing Body. This case is meant for use in an introduCTory class in decision making for postgraduate or undergraduate management students to illustrate the process of rATIonal decision making. It is also aimed at helping students write decision reports. the case requires the student to intuitively arrive at an understanding of the problem of fixed costs not being covered by the margin that the projeCT is allowed to make, thus making sales volume a critical faCTor in breaking even. A second aspeCT that the students will have to identify is the possibility of reducing fixed costs by addressing cost inefficiencies or by making operATIonal changes.